Title Insurance

Title Insurance is issued in the United States upon the purchase of real property. A title insurance policy ensures that you have clear and marketable title to a property when you close. Title insurance has many facets to it like lien searches, title commitments, title policies etc. but Wikipedia defines what is title insurance in a better way. Wikipedia defines title insurance as “indemnity insurance against financial loss from defects in title to real property and from the invalidity or enforce-ability of mortgage liens.

Title insurance protects the owner of the property as well as the lender’s financial interest in the property against loss due to defects in title, liens, judgments, etc. A lien that shows up in a Title Search will cause the title to be clouded (defective) and will make the title unmarketable. What this means is that unless the buyer is willing to buy the property with the existing defect, the property cannot be transferred prior to being resolved. Title insurance is essential for you to have peace of mind that your new home and property is yours without defect.